[changbo]

I am thinking about buying a house for tax deduction and life style enjoyment.

Are real estate prices near bottom or not even close?

I am looking at the Grand Rapids Forest Hill area.

Thanks

[Rapunzll]

Grand Rapids seems to be doing pretty well.
There is no way to say though if prices have reached rock bottom. But I think if you find a house you like, the price seems good, and you can afford it, buy it!

[changbo]

Thanks. I also seek opinion to see if buying is a good investment in this economy.

For the next few years, I have been told this area the best one can hope for is the value staying roughly the same.

It takes several hundred more to buy instead of rent for me each month.

My friends are telling me buying home is an "opportunity cost" compare to stocks. But I know little about stock or other investment opportunities.

Putting the money in the bank would be under-utilizing, since I don't expect some investment opportunity to come by that I know much about.

Originally Posted by Rapunzll

Grand Rapids seems to be doing pretty well.
There is no way to say though if prices have reached rock bottom. But I think if you find a house you like, the price seems good, and you can afford it, buy it!

[suydam]

Buying a house is a good investment if you also live in it and play to stay awhile.

I would not buy in Michigan right now if you weren't planning on living in the house for 5-10 years. Even in Grand Rapids where things are doing pretty well economically, the real estate market is depressed (this is a national problem, not a Michigan-specific one).

[arrowfan]

I will sell you my home. It's 30 mins east of Grand Rapids and about 7 miles outside of Ada. If your interested in finishing a remod. all for $132,000!! Oh yeah and these people lie about the economy in Michigan. Michigan is an automotive manufactoring state and since all the automotive companies are outsourcing we can say bye-bye to jobs. Xrite just cut a bunch of jobs last week.

[GoCUBS1]

Originally Posted by changbo

I am thinking about buying a house for tax deduction and life style enjoyment.

Are real estate prices near bottom or not even close?

I'm not sure if you're looking at other areas in Michigan, but I was in the U.P. skiing a few weeks ago and I could not believe the price of real estate. There were tons of ski chalets (on or next to ski mountains) for under $40K, multi-units under $100K, condos under $20K, property w/ Lake Superior frontage under $100K, and an entire Ski Resort (BlackJack) for under $2.5M (cheaper than many homes in Chicago where I'm from). Since we are avid skiers/snowmobilers, I'm also thinking about buying a property for "life style enjoyment." Can the prices in the U.P. possibly go any lower?

[mich2fla]

It's a good time to buy and a lousy time to sell pretty much all over the USA.

We live in FH schools...this area is still desirable...like others said if you are planning on staying for at least 5 years, you should be fine.

We are in the process of finishing off our basement...we have confidence that the market will bounce back.

Good luck!

[bryan61]

The price of real estate has always been low in the UP. When speculation and sub prime was driving up prices in the rest of the county we didnt see much of an increase here. Now that the bottom is falling out we dont get that either. Thats the way it is at the bottom

[changbo]

Originally Posted by mich2fla

It's a good time to buy and a lousy time to sell pretty much all over the USA.

We live in FH schools...this area is still desirable...like others said if you are planning on staying for at least 5 years, you should be fine.

We are in the process of finishing off our basement...we have confidence that the market will bounce back.

Good luck!

Thanks! I figure if I don't stay long or the value keeps on sliding, hopefully it can be rent out from then on to cover mortgage.

The real estate agent recommended this area since it's considered in higher demand compared to the rest.

Does this translate to easier to rent compared to other areas?

The house I am looking at is in Cascade and a country style setting. It's on a private wooded lot and distant compared to other houses. In the summer, the trees would block out vision of the other houses.

Though I love it having came from an urban area, does this make it difficult to rent?

If I were to rent, does it become less desirable if I were to live in the basement?

[suydam]

Originally Posted by changbo

If I were to rent, does it become less desirable if I were to live in the basement?

Yes, I think it probably does.

I don't know you, of course...maybe you're really cool and fun, or incredibly attractive... but the thought of my landlord living in the basement would give me the heebie-jeebies.